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October 19, 2010 C-2009-087/Peabody Sage Creek Mine JDM <br />November 1, 2010. No mining operations have been initiated and Scott Cowman stated that mining operations <br />would start when ground conditions are suitable in the Spring of 2011. <br />:ROADS <br />The mine roads were stable with no damage noted at the time of the inspection. The roadside ditches were stable <br />with no major erosional features identified. Permitted road construction has not begun. <br />RECLAMATION SUCCESS <br />The majority of the area of disturbance for the Sage Creek Mine has been previously disturbed and is in phased <br />bond release status by Seneca Coal Company. The reclaimed areas were stable with good vegetation identified. <br />The established drainages and backfilled areas were stable with no problems noted. <br />REVEGETATION <br />The extent of disturbance area under the Seneca II permit has good vegetation established. The area of the <br />proposed Phase I release of the Seneca Mine (8 acres) appeared stable with no erosional features evident. <br />ON-SITE FACILITIES <br />On site facilities area were stable at the time of the inspection. All non-coal waste in and around the facilities area <br />will need to be addressed for removal. <br />SIGNS AND MARKERS <br />Mine ID signs are in place at the required locations along CR27, 27a, and 51. The mine ID signs do not identify <br />the site as Peabody Sage Creek as in the approved permit. Scott Cowman stated that a corporate name change is <br />forthcoming and the ID signs would be corrected to reflect the change. <br />Disturbance boundary makers and stream buffer markers are in place. The disturbance area markers delineate the <br />area of the site to be re-disturbed. SCC provide a letter in reference to the requirement of disturbance boundary <br />markers during the inspection. <br />DOCUMENTS RECEIVED - Letter in reference to a justification of disturbance area markers <br />Number of Partial Inspection this Fiscal Year: 1 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 3 of 6